Intel can be producing customized chips, designed by Microsoft for Microsoft, as a part of a deal that Intel says is price greater than $15 billion. Intel introduced the partnership throughout its Intel Foundry occasion in the present day. Though neither firm specified what the chips could be used for, Bloomberg famous in the present day that Microsoft has been planning in-house designs for each processors and AI accelerators.
“We’re within the midst of a really thrilling platform shift that may essentially remodel productiveness for each particular person group and the complete business,” mentioned Microsoft CEO Satya Nadella within the official press launch.
The chips will use Intel’s 18A course of, which has been a giant a part of its street map because the firm introduced CEO Pat Gelsinger again to show issues round. The corporate is relying on its chip foundry providers to place it again on prime of the chipmaking world, and evidently Microsoft would be the first main buyer for this venture.
Leaning on producing others’ designs is a playbook that’s labored nicely for competitor Taiwan Semiconductor Manufacturing Firm (TSMC), which has profitable partnerships with corporations like Apple, Qualcomm, and AMD. Gelsinger advised VentureBeat in the present day that the corporate’s foundry is a giant a part of its technique.
Intel’s new foundry plans come as extra corporations search to provide their very own self-designed chips, but it surely nonetheless faces challenges. Intel lately pushed again the opening of a $20 billion Ohio chip plant to 2026 — it was initially slated for 2025 — citing a sluggish chip market and delays in authorities grants.
